KDOR seizes assets of Cowboys Grill

The Kansas Department of Revenue and the Bourbon County Sheriff's Office, on Tuesday, executed tax warrants filed in Bourbon County District Court. KDOR seized the business assets of Cowboys Grill, Inc., 15 E. Huntington Blvd., and the personal assets of the officers of the corporation, Thomas and Lesa Claypool, for nonpayment of State Retailer Sales and Withholding tax.

Seized assets will be sold at public auction to pay toward delinquent tax, a KDOR statement said.

Warrant execution occurs when all other collection attempts, including multiple letters, telephone calls, letters of impending legal action, tax liens filed with the District Court of domicile to secure the debt, previous bank levies and on-site till taps are executed to bring the taxpayer into compliance have been exhausted. After several unsuccessful collection attempts, or lack of response from the taxpayer, KDOR is forced to take aggressive warrant execution action of seizing assets, which in this instance resulted in the business being closed, according to KDOR.

KDOR's standard practice is to continually encourage delinquent taxpayers, who are not lawfully filing or paying taxes (sales, income, etc.), to voluntarily enter into repayment agreements. When multiple collection attempts fail, KDOR is forced to protect the interests of the state and employ civil actions aimed at encouraging the taxpayers to comply, such as a bank levy, a till tap, or ultimately seizure of assets.

According to the KDOR statement, the Claypools owe a total of $67,685 in delinquent taxes, including $54,867 in delinquent sales taxes and $12,798 in delinquent withholding taxes.

A total of $35,983 in sales taxes was reported delinquent between July 2006 and July 2008; $8,001 in sales taxes during the periods of August-December 2008, and January-March 2009; and $10,901 in sales taxes between April and June 2009.

Between January 2006 and July 2008, $8,299 was reported in delinquent withholding taxes; $2,581 in delinquent withholding taxes during the periods August-December 2008 and January-March 2009; and $1,917 in delinquent withholding taxes between May and June 2009.

This is the second case of KDOR seizing the assets of a local restaurant in the just over 3 years. The former owners of Taco Tico, Trend Enterprises Inc., had their assets taken on Dec. 4, 2007.

Coincidentally, Taco Tico is the next building immediately to the north of Cowboys.